In March alone, inflation in Nigeria hit a 4-year high by more than 18 percent, while food prices are up by almost 23 percent.
Africa’s largest economy is currently struggling with a number of challenges like the fall in the price of oil, naira exchange rate depreciation, foreign exchange liquidity shortages, impacts of climate change and the worsening state of insecurity on farming communities.
Naira depreciated against the US dollar to close at N410.67 to a dollar on Tuesday, 20th April 2021, representing a 0.08% decline when compared to N410.33/$1 recorded on Monday, 19th April 2021.
TwentyTen Daily reports that the price of foodstuff in local markets has doubled since January. In December a Paint1 of Garri sold for 900 naira ($2.22) but now, a Paint sells for 1500 naira.
At the beginning of the year, a cup of beans was sold in the market for 250 naira, now it sells for 400 naira.
A crate of egg was sold for 1000 naira, now goes for 1500 naira.
A bag of sachet water now retails at 150 to 200 naira from 100 naira.
As well as inflation, a rise in joblessness has left a third of Nigeria’s workforce unemployed at the end of 2020, according to the National Bureau of Statistics. The World Poverty Clock reports that at the latest count, Nigeria had 43 percent of its population or about 90 million people living below the poverty line of less than $1.90 per day.
“The price of everything is just going up and ordinarily an income that was manageable before is now barely enough to last a month. The country is getting harder”, said civil servant, Abimbola A.2
Business leaders and financial analysts say curbing inflation is key to rebooting the economy.
The Lagos Chamber of Commerce and Industry said problems that need tackling include high transportation costs, the rising cost of energy and logistics.
1: It is a 4-litre paint bucket converted to a guide used to measure grainy foods, legumes, flours, cassava flours in Nigerian markets.
2 : Name has been changed as requested.